IDLC rights issue gets green light
Bangladesh Securities and Exchange Commission yesterday approved IDLC Finance's application to raise Tk 251.37 crore through rights issue.
The rights issue is an offer of new shares by a company to its existing shareholders in proportion to the shares they already own and usually at a discount to market price.
The non-bank financial institution, which was listed in 1992, will issue 12.57 crore rights shares of Tk 10 each that will also have a premium of Tk 10.
One rights share will be offered for existing two shares, the stockmarket regulator said in a statement.
The raised fund will be used for strengthening IDLC's capital so that it can scale up its SME, consumer and corporate lending. City Bank Capital Resources will be the issue manager.
IDLC's earnings per share stood at Tk 5.81 as per last year's audited financial statement and the net asset value per share Tk 30.97.
On the Dhaka Stock Exchange yesterday, each IDLC share traded between Tk 58.8 and Tk 60.2 before closing at Tk 59.1.
Sponsors hold 59.66 percent stakes in IDLC, institutions 23.21 percent, foreign investors 4.78 percent and general public the remaining 12.35 percent, according to DSE data.
The BSEC also allowed Mutual Trust Bank to raise Tk 500 crore by issuing non-convertible subordinated bonds to meet its tier-II capital requirement. The bonds will have a maturity period of seven years.
The face value of the bond, which can be issued to only financial institutions and high net worth individual investors through private placement, will be Tk 1 crore per unit.
Also at yesterday's meeting, which was presided over by BSEC Chairman M Khairul Hossain, it was decided that stockbroker HAC Securities will be fined Tk 2 lakh for breaching securities rules.
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